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Edward Jones Revamps Transition Package

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To help grow its advisor force this year, Edward Jones has developed an enhanced transition package for current successful financial advisors who join the firm. As of December 31, 2008, Edward Jones included 12,155 financial advisors — including some in Britain and Canada.

A total of 1,385 individuals have been hired year to date, putting the firm ahead of its 9-percent growth target. And over the following three years, the broker-dealer would like to grow 10 percent a year as part of its five-year plan.

On average, producing transfer brokers now have about $40 million in assets under management, according to Edward Jones Partner Phill Leathers, and about $240,000 in yearly gross dealer concessions.

“We hired 31 producing transfer brokers in ’08, and in ’09 are at 57 as of May 10,” he says. The majority of the veteran hires are coming from the wirehouses. Overall, including new advisors being hired with other professional backgrounds, Edward Jones is likely to hire about 4,000 advisors or more this year.

“The transition package, which has been around for some time, has now been completely revamped to provide enough [financial] certainty to those making a move to Edward Jones,” he says. “Our objective is to get more people servicing more clients.”

This enhanced transition package includes: an income guarantee based on assets under management; a monthly asset-based bonus for the first six months; a production-based bonus in the second six months; access to a transition specialist at no charge; and no long-term commitments or payback schedules.

Those current financial advisors eligible for the program are required to have at least three years of FA experience, $150,000 in trailing 12-month gross production and $20 million of client assets under management.

Those in this ballpark, transferring over about 80 percent of AUM and doing $65,000 in gross production for six months, for instance, would receive about $111, 997, according to Leathers.